Why NYSE:ALE qualifies as a good dividend investing stock.

Our stock screener has spotted ALLETE INC (NYSE:ALE) as a good dividend stock with solid fundamentals. NYSE:ALE shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Assessment of NYSE:ALE

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:ALE earns a 7 out of 10:

• With a Yearly Dividend Yield of 4.48%, ALE is a good candidate for dividend investing.
• ALE's Dividend Yield is a higher than the industry average which is at 3.98.
• Compared to an average S&P500 Dividend Yield of 2.37, ALE pays a better dividend.
• ALE has paid a dividend for at least 10 years, which is a reliable track record.
• ALE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

A Closer Look at Health for NYSE:ALE

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ALE has received a 5 out of 10:

• ALE's Altman-Z score of 1.18 is fine compared to the rest of the industry. ALE outperforms 73.33% of its industry peers.
• With an excellent Debt to FCF ratio value of 6.15, ALE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
• ALE's Debt to Equity ratio of 0.63 is fine compared to the rest of the industry. ALE outperforms 75.56% of its industry peers.
• With an excellent Current ratio value of 1.66, ALE belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
• The Quick ratio of ALE (0.96) is better than 62.22% of its industry peers.

What does the Profitability looks like for NYSE:ALE

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ALE scores a 5 out of 10:

• ALE has a Return On Assets of 3.63%. This is in the better half of the industry: ALE outperforms 71.11% of its industry peers.
• The last Return On Invested Capital (2.45%) for ALE is above the 3 year average (2.22%), which is a sign of increasing profitability.
• ALE has a Profit Margin of 13.94%. This is in the better half of the industry: ALE outperforms 66.67% of its industry peers.
• In the last couple of years the Profit Margin of ALE has grown nicely.
• The Gross Margin of ALE (83.27%) is better than 82.22% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of ALE for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.